Regions ‘will feel different Brexit impacts’

Experts from Sheffield University found that northern regions are more reliant on exporting goods to the EU than the south raising questions over the impact of any change in the trading relationship between Britain and Europe

James Reed

Poorer regions of the country including Yorkshire face greater uncertainty from a decision to leave the European Union, according to a new report.

Experts from Sheffield University found that northern regions are more reliant on exporting goods to the EU than the south raising questions over the impact of any change in the trading relationship between Britain and Europe.

The North also receives a higher percentage of cash from the European Union which is largely distributed on the basis of economic prosperity.

Historically, Yorkshire has been a major recipient of EU funds as one of the less economically successful parts of the country.

Dr Craig Berry, deputy director of the Sheffield Political Economy Research Institute and co-author of the two studies published today, said: “It is regrettable that the regional dimension of the UK/EU relationship has received relatively little attention in the public debate around the impact of ‘Brexit’. This research highlights how the UK’s poorest regions face greater economic uncertainty than richer regions if Britain votes to leave the EU on June 23.

“The economic status quo does not work in the favour of the UK’s poorest regions, in particular Wales, Northern Ireland, the South West and the North of England, yet it is these regions which face the most uncertainty if there is a leave vote.

“In England the government’s ‘Northern Powerhouse’ agenda is designed to address such regional imbalances.

“However it is questionable whether that agenda is compatible with ‘Brexit’ if it leads to the loss of regional economic development funds and more restricted access for regional manufacturing exports to pivotal EU markets.”

He added: “Both sides of the referendum campaign need to provide more clarity for voters about the regional implications of staying in or leaving the EU.

“A ‘leave’ vote could cause a huge degree of economic uncertainty and short-term disruption, and this would be felt most acutely in the UK’s poorest regions.”

The university’s study showed the sharp difference in reliance on EU trade between different parts of the UK.

Places such as the North East and the devolved nations sell more to Europe than they import, arguably making them most vulnerable to any change in the UK’s trade relationship with the EU.

Yorkshire has a £4.3bn goods trade deficit with the EU but that is small compared to the South-East with a trade gap of £39bn suggesting that part of the country has less to lose.